DRG Merges With Papsadore Direct

New Shop Based in Boston, but San Francisco Office Is Planned
BOSTON–Direct Results Group here has merged with Papsadore Direct in San Mateo, Calif., forming a 20-person, Boston-based agency that will continue to operate under the DRG moniker.
Jim Hackett and Phin Gay, who founded DRG in 1995 and have run the agency as partners, welcome Frank Papsadore as another partner. Hackett serves as president, chief executive officer and new business director. Gay is chief financial officer and client services director. Papsadore takes the title of chief operating officer and director of creative services.
The three principals have known each other since the 1980s, when Papsadore served as a marketing executive at the now-defunct Bay State software house Cullinet. He was a client of Hackett and Gay when they worked at direct marketing agency CPS in Woburn, Mass. Also, Papsadore is married to Gay’s sister Polly, who works at DRG as an account director.
Papsadore has closed his San Mateo operation–founded in 1993–and moved to Boston with three employees. He plans to open a DRG office in the San Francisco area soon to service West Coast clients. The agency expects to have about 20 people working in that outpost by year’s end, he said. The partners believe the shop is capable of growing to 50-100 people within a few years.
“We plan to be a major player,” Papsadore said.
Hackett estimated current billings at around $20 million, growing to $30 million in 1998.
The merger allows the agencies to pool their respective resources and specialities into a single bicoastal entity, the partners said.
Papsadore Direct has a background providing traditional direct marketing services–mail, advertising, events management–to high-tech clients, such as Microsoft Corp., for which it recently created an insert that ran in technology publications nationwide.
“When we combined our resources, we rounded out our capabilities,” Papsadore said.
Other West Coast clients include Softback Expositions, Mentor Graphics and Oracle. Accounts on the East Coast include AT&T, BankBoston, Hitachi, the Boston Celtics and Bay State Gas.